Money Flows before the start of Europe

Today we expect a positive mood to capture trade in Europe that will continue yesterday's green sessions in the US and Asia. Yesterday at the end of the state session, news came out that Finance Minister Mnuchin has offered tariff cuts against China with the idea of ​​provoking them to act. The leading negotiating delegation of the United States, Lighthizer, did not support Mnuchin's idea. This led to a rise in US indices. Later, however, the US Treasury Department denied having had such a final decision and did not formally confirm the words of the Minister. His words, though unconfirmed and in the category of rumor and manipulation, had the effect: they raised the markets and shone them with the positive outlook that the United States had good intentions to resolve the conflict. Asian traders were particularly inspired, and all of Asia was green. The feeling for Europe is supposed to be the same. Let us also look at the indicative levels of opening before the start of Europe.

Indicative levels of opening of the main European indices:

DAX: +8 пункта

FTSE: +15 пункта

CAC: +6 пункта

However, the risks are not over. Although with renewed optimism, trade negotiations still face a great deal of uncertainty in their success, and there is not much progress at all for the moment. However, side-effects weigh up like the Huawei investigation. The world economy is on the brink of recession, as we already have noticeable cracks in Europe, China and developing countries. Brexit is in the spiral of insecurity, and the risk of getting into the twilight zone is getting bigger. Plan B is scheduled to be announced on Monday by Theresa May, and a second referendum is already under way. For the time being, markets suggest that a healthier way is to re-vote.

Photo: Pixabay

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